Presentation on SMME funding LIMDEV
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Transcript Presentation on SMME funding LIMDEV
1
Limpopo Economic
Development Enterprise
EASTEN CAPE DEVELOPMENT
CORPORATION – 02 MAY 2011
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Presentation Outline
Purpose of presentation
Background
Vision
Mission
Products & Services
Targeted Sectors
Pricing and
Requirements.
3
Purpose of the presentation
To highlight the developmental products
and services offered by LimDev to
SMME’s and Co-operatives within
Limpopo Province.
4
Background
Mandate of LimDev in terms of the Act
(Northern Transvaal Corporations Act, Act
No.5 of 1994, Section 4)
Encourage
Plan
Finance
Coordinate
Promote
Carry out development of the Province and its
people
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Our Vision
To be the pre-eminent catalyst and
partner in economic growth and
empowerment in the Limpopo Province.
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Mission of LimDev
Mission
TO Establish and advance a sustainable SMME
sector through the facilitation and provision of
business and investment opportunities
Main activities
SMME funding and contribution to economic
development
Providing guarantees and sureties. (subject to
Minister’s approval)
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PRODUCTS & SERVICES
SMME Development Finance
Project Development and
Property Management
Mining Development
Housing Development finance
Passenger Transport.
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Project Development and Property
Management Division
LimDev partners with SMME’s on property
development.
and
It also provide rental space for SMME
development(Large and Small Industries
and Shopping Complexes)
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Housing Development Finance
Risima Housing Finance is a 100%
subsidiary of LimDev.
It finance Rural and Urban development
And
It contribute towards SMME development
by procuring construction services from
building contractors.
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Mining Development
Corridor Mining Resources is a 100%
subsidiary of LimDev.
And
It goes into join-ventures with BBBEE in
mining projects
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Passenger Transport
Great North Transport in a 100%
subsidiary of LimDev and it provide public
transport.
and
It contribute to SMME development
through procurement services.
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SMME Development Finance
LimDev provide developmental finance to
SMMe’s,
and
Providing guarantees and sureties.
(subject to Minister’s approval)
SMME Development Finance is the core
business of LimDev
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Targeted Sectors Prioritized
Manufacturing
Mining
Tourism
Agriculture ( agro-processing )
Construction
Retailing
Specialized Business Services
Personal Services
Transport.
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Types of Financial Products
The following are types of financial
products available for the SMMEs
in the Limpopo:
Working Capital Finance
Capital Expenditure Finance
Start up Capital Finance
Equity Capital Finance
Bridging Finance
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Working Capital Finance
Purpose
Finance working capital
requirements
Stock and/or working materials
Administrative/Operating
Expenses
Term: 12 -36 months
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Capital Expenditure Finance
Purpose
Finance capital expenditure
requirements (yellow assets)
Equipments and machinery
Term: 36- 60 months
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Start-up Capital Finance
Purpose
Loan Finance of newly discovered business
ideas and opportunities
Term
Max. of 36-84 months
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Equity Capital Finance
(BEE financing)
Purpose
Finance purchase of equity/stake in existing businesses
Term
Build-in exit strategy from beginning. Max. period : 3684 months
Conditions: acquire board seats in the project
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Bridging/Procurement Finance
Product
Purpose
Cover for immediate demand in goods/services
Finance for procurement orders and contracts from
Government at National, provincial and local level
Catering for increased demand during holidays and/or
pick periods.
Term: 3 months or period of the contract
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CHARGES
Prime-linked interest rate.
Thus interest rate is controlled by the risk
factor (Min Prime less 3% and Max Prime
plus 2%)
Admin fee of 1% limited to R2 500.00 (NCR)
OR R3 000.00 VAT inclusive depending on
the amount .
Application fee of R500.00 OR R5 000.00
based on the amount requested.
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Requirements
The business must be registered either as:
Sole Proprietorship
Partnership
Close Corporation
Private Company
Co-operatives
Viable/Bankable Business Plan
Securities
Deed of Grant / PTO / Title Deed
Investments; Insurance Policy (with surrender value)
Surety ship
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Requirements (Cont)
Original SA identity document
Proof of marital status
Proof of residence
valuation fee (over R50 000.00)
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Requirements (Cont)
Copy of contract / appointment letter
Business Profile
Financial statements projections
Cash flow projections
Work schedule
Bank statements (Six month period)
Tax clearance certificate
Ck documents or memorandum and articles of
association
10% own contribution on ordinary business.
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Summary of SMME’s financed over
five year period(2006-2010)
NO
Period
No of SMME’s Finance
Value of amount Financed
1
2005/06
262
R56.6 million
2
2006/07
456
R105.8 million
3
2007/08
432
R61.1 million
4
2008/09
88
R19.1 million
5
2009/10
75
R16.5 million
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RISIMA HOUSING FINANCE
NO
Period
No of Houses
Value of amount Financed
1
2005/06
269
R40.4 million
2
2006/07
420
R68.0 million
3
2007/08
357
4
2008/09
5
2009/10
R32.9 million
204
R56.1 million
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Great North Transport (2006-2010)
NO
Period
No of Passenger transported per
annum
1
2005/06
36.0 million
2
2006/07
36.5 million
3
2007/08
36.0 million
4
2008/09
42.2 million
5
2009/10
36.0 million
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Contact Details
Lebowakgomo:
Ritavi :
Giyani :
Thohoyandou :
Polokwane :
015-633 4700
015-303 1731
015-812 3111
015-962 4900
015-295 5120
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THANK YOU
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